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Difference b/w Income Tax Rebate Vs Tax Deduction Vs Tax Exemption

Income Tax Exemptions

Income Tax Exemptions are allowed to be claimed from a specific source of Income and not from the Gross Total Income. For eg: Income Tax Exemptions allowed under head salary are not allowed to be claimed from any other head.

Similarly, Income Tax Exemptions allowed to be claimed under head Capital Gains under Section 54, 54EC, 54F etc are not allowed to be claimed under any other head

Thus, Income Tax Exemptions are those items which are allowed to be claimed only from a specific source of Income and not from the Total Income

Income Tax Deduction

Income Tax Deduction is allowed to be claimed from the total income under each head and also from the gross total income. Deductions are allowed to be claimed in case the taxpayer has incurred some specified expenditure or made specified investments.

Examples of Income tax deductions allowed are as follows:-

Income Tax Rebate

Income Tax Rebates are those items which are allowed to be claimed from the total tax payable. It is pertinent to note that Income Tax Exemptions and Income Tax Deductions are allowed from to be claimed from the Income whereas Rebate is allowed to be claimed from the Tax payable.

Various types of Rebates available for an Individual taxpayer are as follows

A Personal Finance enthusiast, Karan is the founder of charteredclub.com and loves to discuss about Money related matters.


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